Vehicle Depreciation and Insurance Arbitration in Traffic Accidents

Repairing physical damage after a traffic accident does not restore a vehicle's full economic value. Due to accident history recorded in insurance databases (Tramer/SBM), second-hand market value drops. Under Turkish law, this is compensable as vehicle diminution in value (araç değer kaybı).

Vehicle depreciation constitutes direct material damage under Articles 49 et seq. of the Turkish Code of Obligations (Law No. 6098) and the Highway Traffic Law (Law No. 2918).

Who Is Liable?

Claims may be filed against:

1. Compulsory Third-Party Motor Liability Insurer (ZMMS): Under Article 91 of Law No. 2918, the at-fault vehicle insurer covers direct material damage within policy limits.
2. At-Fault Driver: Liable in tort under Article 49 of Law No. 6098.
3. Vehicle Operator / Registered Owner: Strictly liable under enterprise liability pursuant to Article 85 of Law No. 2918.

Market Valuation Post-Constitutional Court Annulment

Following the Constitutional Court's decision (E. 2019/40, K. 2020/40), depreciation is assessed based on true second-hand market differential rather than restrictive administrative tariffs. Key factors include age, mileage, model, and structural chassis/bodywork damage.

Mandatory 15-Day Insurer Application (HTL Article 97)

Before initiating litigation or filing before the Insurance Arbitration Commission, claimants must submit a written claim to the liable insurer. The insurer has 15 days to settle. Failure to follow this prerequisite results in dismissal for procedural non-compliance.

Insurance Arbitration Commission Proceedings

Under Article 30 of Insurance Law No. 5684, the Commission resolves claims within 4 to 6 months, issuing enforceable decisions equivalent to court judgments.

Frequently Asked Questions

Question: What can be done if airbags deployed and chassis damage occurred, but the insurer's appraiser evaluated depreciation too low? Airbag deployment and structural chassis repairs cause severe market depreciation due to buyer perceptions of compromised structural safety, even if not classified as a total loss. However, the exact rate of loss is not fixed by statute; it is determined through independent expert evaluation based on vehicle make/model, repair quality, and actual secondary market value differentials. In applications before the Insurance Arbitration Commission, market price evidence of comparable undamaged vehicles and structural integrity loss should be presented to obtain a comprehensive expert reassessment.

Question: Can I claim vehicle depreciation if fault was split 50-50 in the police report? Yes. Complete lack of fault is not required; only a driver bearing 100% full liability is disqualified. If fault is apportioned 50-50, you are legally entitled to recover 50% of the total assessed market diminution from the other driver's compulsory traffic insurance.

Question: Can I claim vehicle deprivation damages in addition to diminution in value? Yes. Diminution in value compensates for the loss in resale market value, whereas loss-of-use (deprivation) damages cover actual alternative transportation expenses during the reasonable repair period. While compulsory traffic insurance does not cover loss-of-use, it can be claimed directly from the at-fault driver and registered owner.

Question: Does signing a settlement release with the insurer bar further claims? No. Under Article 111 of the Highway Traffic Law, releases or settlements containing inadequate compensation can be rescinded within 2 years from payment, allowing the claimant to pursue the remaining compensation before the Insurance Arbitration Commission.

Question: How can battery degradation in an electric vehicle be proven after a crash? Vehicle range degradation should be documented immediately through diagnostic fault codes (DTC), battery state-of-health (SoH) diagnostics at an authorized dealership, and court-appointed expert evidence preservation before repairs.